Coinsurance reduces moral hazard in exactly the same way as

Question

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Coinsurance requires policyholders to pay a percentage of the cost of their medical expenses, which reduces the likelihood that they will overconsume healthcare services or be too careless in their decisions because they have to share the cost with the insurance company. This reduces moral hazard. Deductibles operate similarly to coinsurance, requiring policyholders to pay a specified amount of their medical expenses out of pocket. Limits on insurance, restrictive provisions, and risk-based premiums may help reduce moral hazard to some degree, but they do not work in exactly the same way as coinsurance.

Coinsurance Reduces Moral Hazard in Exactly the Same Way as